Economies of Scale Can Be Implemented by Cooperative Game: The Chain Model Case

Hung-Ming Peter Wu
Keith D. Willett

DOI: 10.2190/G103-37W5-311K-9318


An important issue examined in this article is that the chain model (which solves for the optimal sitting problem of regional wastewater treatment plants) cannot be implemented if the dischargers do not have fair cost sharing. The article finds that the total treatment cost of the optimal regional treatment plant is fairly assigned to each discharger by the N-cooperative game-MCRS approach. Therefore, the economies of scale are implemented by cooperative game in the chain model case.

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